Global Value Chains and the Continuing Case for Free Trade

Over the past several decades, a new trade paradigm has arisen, one that deemphasizes domestic, vertically integrated firms competing in end products with similarly integrated firms from other nations. Instead, from automobiles to electronics, chemicals, and clothing, the production process has dispersed.

This working paper was published as Chapter 8 in Rethinking Competitiveness by The AEI Press in December 2012.